Hungarian state to buy Budapest Bank from GE
The Hungarian government has signed a preliminary deal to buy Budapest Bank from its 100%-owner General Electric by June 30. Economy Minister Mihály Varga said Thursday said the price of the eighth-largest bank in Hungary by total assets would be revealed later.
The move comes as the government of Prime Minister Victor Orbán tries to increase domestic ownership in the banking sector. In July, Hungary paid €55 million ($68 million) to Germany’s Bayerische Landesbank for a 99.9% stake in MKB
The buyer will be Corvinus Nemzetközi Befektetési and the Hungarian Development Bank (MFB Zrt) will ensure funding for the acquisition, he added. Varga said that with the latest purchase, the government wants to boost lending and increase competition among banks and “put Hungary’s economic growth on more stable footing.”
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.